“Global 5G Chipset Market to reach a market value of USD 155 Billion by 2031 growing at a CAGR of 19.5%”
The Global 5G Chipset Market size is expected to reach $155 billion by 2031, rising at a market growth of 19.5% CAGR during the forecast period.
Automotive manufacturers are utilizing 5G chipsets to facilitate ultra-reliable, low-latency communication for real-time data exchange between vehicles, infrastructure, and other road users. Hence, the automotive & transportation segment acquired 19% revenue share in the market in 2023. The increasing integration of 5G technology into vehicles to enable advanced features, such as connected car services, vehicle-to-everything (V2X) communication, and autonomous driving, played a significant role in this growth. The adoption of 5G for enhancing in-car infotainment systems and improving vehicle safety contributed to the segment's share.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance In July, 2024, Qualcomm Incorporated unveiled the Snapdragon 4s Gen 2 chipset, designed in India, to enable 5G smartphones on standalone (SA) networks priced at Rs 8,300 or less. Competing with MediaTek, Qualcomm aims to dominate the sub-Rs 10,000 5G chipset market in India, leveraging local engineering talent for affordable 5G solutions. Additionally, In January, 2024, Infineon Technologies AG unveiled EZ-PD PAG2 chipset, featuring EZ-PD PAG2P and PAG2S, is a highly efficient solution for USB-C power delivery adapters.
Based on the Analysis presented in the KBV Cardinal matrix; Samsung Electronics Co., Ltd., Huawei Technologies Co., Ltd., and Broadcom, Inc. are the forerunners in the 5G Chipset Market. In June, 2021, Samsung Electronics Co., Ltd. unveiled new 3GPP Rel.16 compliant chipsets for next-gen 5G solutions, including a third-gen mmWave RFIC, second-gen 5G modem SoC, and DFE-RFIC integrated chip. These chips will power Samsung’s 5G products, improving performance, efficiency, and size. Companies such as Qualcomm Incorporated, NXP Semiconductors N.V., and Infineon Technologies AG are some of the key innovators in 5G Chipset Market.
In today's digital age, internet users expect faster and more reliable connections to support their activities, which range from casual browsing to data-intensive applications like video conferencing, streaming, and online gaming. The limitations of 4G regarding data speed and network congestion have created a need for a more robust solution, and 5G is stepping in to meet these expectations. Therefore, the 5G chipset market is experiencing substantial growth as a result of the pervasive demand for enhanced connectivity in a variety of sectors, including healthcare, automotive, and urban infrastructure.
The Internet of Things (IoT) is a vast network of interconnected devices that are able to communicate with one another in order to automate processes, collect data, and improve efficiency across a variety of applications. However, traditional networks often fall short of meeting the connectivity requirements of IoT devices, which need low latency, high reliability, and the ability to handle massive numbers of connected nodes. Moreover, the rising adoption of IoT is evident in smart cities, where 5G connectivity powers various applications, from traffic management systems to environmental monitoring. Thus, as IoT adoption expands, the market for 5G chipsets will grow in tandem.
Designing chipsets capable of supporting high-frequency bands, such as millimeter wave (mmWave), involves using sophisticated technologies and specialized materials, which are expensive and require advanced manufacturing capabilities. These high-frequency bands enable the ultra-fast data speeds and low latency promised by 5G. Consumers may opt for more affordable 4G devices, delaying the transition to 5G. Hence, this limited adoption of 5G devices affects the overall growth of the 5G chipset market, as demand for chipsets is directly tied to the uptake of 5G technology by end-users.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
By product, the market is divided into devices, customer premises equipment, and network infrastructure equipment. The customer premises equipment segment garnered 26% revenue share in the market in 2023. Customer premises equipment (CPE) includes devices like 5G routers, gateways, and modems to receive and distribute 5G signals within homes or businesses. The rise of 5G Fixed Wireless Access (FWA) services has been a key factor contributing to the growth of the CPE segment.
Based on industry vertical, the market is segmented into automotive & transportation, energy & utilities, healthcare, retail, consumer electronics, industrial automation, and others. The consumer electronics segment procured 34% revenue share in the market in 2023. The high demand for 5G-enabled smartphones, tablets, and wearables was the primary factor driving this increase, as consumers pursued devices that could provide high-speed connectivity for activities such as online gaming, video streaming, and virtual reality.
Based on IC type, the market is divided into ASIC, RFIC, cellular IC, and mmWave IC. The ASIC segment garnered 40% revenue share in the market in 2023. Application-Specific Integrated Circuits (ASICs) are processors that are highly specialized and designed for specific applications, making them ideal for managing the unique requirements of 5G technology. The capability of ASICs to optimize performance while minimizing power consumption makes them particularly suitable for 5G base stations and other network infrastructure, where efficiency and speed are crucial.
On the basis of operational frequency, the market is classified into sub 6GHz, between 26 & 39 GHz, and above 39 GHz. The between 26 & 39 GHz segment recorded 30% revenue share in the market in 2023. These frequencies fall within the millimeter wave (mmWave) spectrum, which offers extremely high data rates and low latency, making them ideal for dense urban environments and high-capacity applications. While mmWave provides exceptional speeds, its limited range and penetration mean it is often used as a complement to sub 6GHz deployments in high-traffic areas.
Free Valuable Insights: Global 5G Chipset Market size to reach USD 155 Billion by 2031
The 5G chipset market is intensely competitive due to the rapid growth in demand for high-speed connectivity across mobile, IoT, and industrial sectors. Companies are focusing on developing smaller, more power-efficient chipsets, while also integrating advanced features to support 5G infrastructure. The market's expansion is fueled by the deployment of 5G networks worldwide, driving innovation as competitors seek to dominate the sector with cutting-edge technology and efficient solutions for a wide range of applications
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment garnered 39% revenue share in the market in 2023. Countries like China, South Korea, and Japan have been at the forefront of 5G adoption, driven by government initiatives and large-scale investments in 5G infrastructure. The demand for 5G chipsets in Asia Pacific is also driven by the presence of major consumer electronics manufacturers like Samsung, Huawei, and Xiaomi, who are actively developing and releasing 5G-compatible smartphones and other devices.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 38.7 Billion |
| Market size forecast in 2031 | USD 155 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 19.5% from 2024 to 2031 |
| Number of Pages | 333 |
| Number of Tables | 493 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Operational Frequency, IC Type, Product, Industry Vertical, Region |
| Country scope |
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| Companies Included | Qualcomm Incorporated (Qualcomm Technologies, Inc.), Broadcom, Inc., Intel Corporation, Nokia Corporation, Samsung Electronics Co., Ltd. (Samsung Group), Qorvo, Inc., Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Infineon Technologies AG, Marvell Technology, Inc., NXP Semiconductors N.V. |
By Operational Frequency
By IC Type
By Product
By Industry Vertical
By Geography
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